Delta Africa buys warehouse in Mozambique

DELTA Africa, the largest pan-African listed property fund, has announced that it will acquire a warehouse complex in Pemba, Mozambique.

“Delta has identified this well-positioned warehouse complex opposite the port in Pemba, Mozambique, as an opportunity to expand its footprint in Mozambique,” the company said on Tuesday.

“With the discovery of gas in the Rovuma river basin in the northern province of Cabo Delgado, Pemba is forecast to receive significant investment from both the oil and gas sector and the government of Mozambique.”

The total purchase consideration due under the acquisition agreement amounts to $8.5m. Delta is acquiring the asset from various companies.

Delta is currently in a merger process with Mara Diversified Property Holdings, which is creating a fund with about R7bn worth of assets.

Stanlib’s head of listed property funds, Keillen Ndlovu, has said the Delta Africa and Mara partnership appeared to be a strong move by both parties.

“It’s a good deal. It has more critical mass as compared to funds doing something on their own and having small portfolios,” he said.